Finance industry laments new curbs on securitization

(Washington Post)- For nearly two decades before the financial crisis erupted in 2007, the securitization market allowed Wall Street to manufacture all manner of financial products. The most basic of these were bundles of home, auto and credit card loans that were turned into single investments that firms and countries worldwide could buy.

But then things got more complicated. Wall Street found ways to allow investors to speculate on Hollywood films, patents, lawsuits, airplane sales, and fast food revenues. The most infamous financial engineering, of course, involved the creation of seemingly high-quality investments that in fact backed by high-risk home loans, extended to people with weak finances.

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http://www.washingtonpost.com/wp-dyn/content/article/2011/02/08/AR2011020804827.htmlwere